Nigerian billionaire and businessman Femi Otedola has revealed that he sold his stake in Geregu Power Plc to prepare for an investment in Dangote Petroleum Refinery’s proposed initial public offering, describing the facility as a transformative industrial project capable of reducing Africa’s reliance on imported petroleum products.
Otedola made the remark during a board and management visit to FirstHoldCo’s 650,000-barrel-per-day refinery and Dangote Fertilizer Limited in Ibeju-Lekki, Lagos.
During a visit to the refinery, the Chairman of FirstHoldCo requested that the President of Dangote Group, Aliko Dangote, allot him $100 million in shares in the refinery’s projected listing.
“He is a genius and one of the greatest men to emerge from Africa. What he has achieved is helping to liberate the continent from economic dependency and import reliance.
“I have visited this refinery more than 25 times, and I have consistently appealed for $100m worth of shares during the private placement. That informed my decision to sell my stake in Geregu so I can reinvest in the Dangote Petroleum Refinery,” he said.
Otedola also voiced confidence in the group’s planned increase of refining capacity to 1.4 million barrels per day, pointing out that Africa’s expanding demand for refined petroleum products encourages additional investment in domestic refining infrastructure.
In his speech, Dangote stated that the refinery’s IPO would be broadly inclusive, allowing ordinary Nigerians to become part owners and profit from the value created.
“We want ordinary Africans to participate in the value being created. What companies like Amazon and Apple achieved globally in terms of wealth creation is what we seek to replicate in Africa. We want people to invest, grow with us, and share in the prosperity,” Dangote stated.
Dangote announced plans for an East Africa refinery with a capacity of 700,000 barrels per day, as well as polypropylene and base oil production facilities. According to him, the project might begin within the next three to four years after building begins.
He pointed out that the program was not originally included in the group’s Vision 2030 strategy, highlighting the company’s progress toward achieving its long-term growth ambitions.
Dangote also emphasized the group’s continued leadership in its core industries over the last five years, which include cement operations in 11 African nations, as well as significant investments in refining, petrochemicals, and fertilizer manufacturing.
He added that cement capacity had increased to 55 million tonnes per year, aided by the construction of clinker export facilities to boost regional commerce.
“We have built businesses that address Africa’s critical needs and create long-term value for the continent. Africa must stop exporting raw materials and importing finished goods. That amounts to exporting jobs and importing poverty,” he added.
Olusegun Alebiosu, Chief Executive Officer of FirstBank Group, praised the refinery as a sign of vision, daring, and industrial ambition that might inspire similar investments throughout Africa.
“If you see this refinery and realize that an individual conceived and delivered a project of this magnitude, already helping to stabilize energy supply across Africa, you cannot help but be inspired.
“We have delegates here from the United Kingdom and several African countries who will return home with renewed commitment to building industries that can transform their economies. It is about building Africa together,” Alebiosu said.
Dangote stated that investor interest in the refinery’s listing on the Nigerian Exchange had remained extremely strong, with demand for the private placement now topping $2 billion.
“There is significant interest in both the IPO and the private placement. While we are not able to meet all requests, the strong demand reflects investors’ confidence in the refinery and in Africa’s industrial future,” he noted.
